Investing Education

February 26, 2020

In an uncertain world, should investors have a strategy that looks beyond current trends and accommodates a range of different possible futures? In recent years growth stocks have had a winning streak, is now a good time to consider shifting the balance of your holdings towards companies that can demonstrate the ability to generate profits today. continue…

February 19, 2020

In this week’s video insight Tim takes a closer look at value stocks and growth stocks. On the whole, over long periods of time, it looks as though a value investor has enjoyed a significantly better investment experience than a growth investor. Long-term averages are not the whole story, however. Over short periods of time, value can underperform growth significantly.

February 18, 2020

Today’s world is characterised by fast-money investors looking for high-growth and high-margin businesses, such that businesses with lower margins are considered “boring” or are frowned upon. At surface level, higher margin businesses, in both the gross margin and operating margin sense of the word, must be “better businesses” as they are capable of manufacturing their products and operating their business more efficiently – so more of that initial revenue generated is available for their shareholders. continue…

February 13, 2020

Some years ago, we put together a notional “High-minus-low quality” portfolio, which holds long positions in ASX-listed companies that we consider to be high-quality, and short positions in companies that we consider to be lower-quality. The absolute return from this portfolio provides an indication of whether the higher quality companies are outperforming the lower-quality companies. continue…

February 4, 2020

Rallying markets have raised the valuations of many businesses, possibly to unsustainable levels. To my mind, it’s made one thing clearer than ever: investors need to bulk up on high quality Australian and global businesses, like CSL, Microsoft and Vivendi. continue…

Forecasting a virus would be the pin that ultimately popped the bubble in asset markets – no one predicted that. The impacts of COVID-19 are being felt across almost every aspect of society. Our latest whitepaper covers navigating this correction to set up portfolios and wealth outcomes for the next decade.

February 3, 2020

Equity markets have been very kind to investors in recent years, with stock indices setting new records in Australia and overseas. Notwithstanding some episodes of turbulence along the way, these good results continue a decade-long run of mainly positive returns following the depths of the GFC in early 2009. continue…

February 3, 2020

Businesses sometimes pursue a roll-up strategy, where they buy and merge with smaller companies in the same industry. This helps them pool their resources, cut operating costs, and increase sales. But, too often, that top-line sales growth can be at the expense of shareholders. continue…

January 31, 2020

One characteristic of a high-quality business is its ability to grow its intrinsic value over time. So does that mean that it’s possible to overpay for a high quality business and then wait for it to “grow into its valuation”? This depends on a number of things which we will attempt to tease out. continue…

December 17, 2019

Economists have long been the butt of jokes – including that they make sheep look like independent thinkers! Now, a new study by Dr Ole Peters confirms what most of us long ago concluded: when it comes to human psychology, economists still have a lot to learn. continue…

November 21, 2019

Contrarian investing, according to Investopedia, is an investment strategy characterized by purchasing and selling in contrast to the prevailing sentiment of the time. A contrarian believes that certain crowd behaviour among investors can lead to exploitable mispricings in securities markets. But just how do you become a successful contrarian? continue…

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